Sacramento daily record-union., 1887-08-10
RAILROAD INVESTIGATION.
9. i. Croker Recailed-Testimo ony of j.
OBJ. Gum and j. H. Strowbridse.
IspEaAL DISPATCH 70 m. ..oonp-us,os.,


ESPECIAL DISPATCH TO THE RBcoRD-uN1oN,l
SAN FRANCISCO, August 9ih.-At the oneninp
of the investigation being conducted by the
Federal Commission into the accounts of the
Pacific railways, a lengthy discussion eps,led
between the commissioners and Mr. Cohen con-
cerning the testimony of Colonel Charles r.
Crocker During that gentleman's examination
some days ago Mr.. Pattison asked him IL he
knew Of any money being expended by the Di-
rectors OF the Central Pacific Company to infiu-
ence legislation, which question Mr. Croker
under advice of Mr.. Cohen, Ii was understood
refused to answer. Mr.. Cohen said that he had
no recollection Of advising Crocker to decline
answering that question, as he intended merely
to suppress testimony concerning payments of
money to counsel. which could be better shown
by the vouchers. The stenographer's notes
showed, however that Mr.. Cohen was wrong as
to the way it was understood at the time
Chairman Pattison then called for Colonel
Crocker in order to ask him the disputed cues
tion, Cohen saying that he had no objection to
his answering it
TESTIMONY OF JAMES OBJ GUM
While waiting for the arrival OF Col. Crocker,
james OBJ. Gum, formerly Secretary of the
California Pacific, Sacramento and Placeryille
Amador branch and other leased lines of the
witness said he was at present Secretary of the
Union Iron Works. He said he left the railroad
company about three years ago, having been in
their employ since 1871. For while he had
Company. At one time Charles Crocker re-
quested him to straighten out the accounts in
which work he was assisted by A. c. Irwin, now
living at Marysyille. The books were in the
handwriting of John Miller. A report was made
TO Charles Crocker and General Cotton, after
which the books were slowed away in safe at
Fourth and Townsend streets. He understood
the examination was made in reference to the
affairs of John Miller, who was then about to be
tried for embezzlement. The set consisted of a
ledger journal and cash-book. and had been
kept by Miller.
Members of the Commission asked where
those books now are, and were answered that
they were probably in the safe at Fourth and
Townsend streets, and Mr.. Cohen promised to
look for them and produce them If there
In answer to Mr.. Littler, the witness said
there was nothing in the report made to Crocker
upon the condition of the books which reflected
upon the officers of the Central Pacific or the
Contract and Finance Companies.
On cross-examnation Mr.. Cohen asked-In
making your examination of the books of the
Contract and Finance Company, at the request
of Charles Crocker, did you find or do YOU recall
anything prejudicial to the character of the Off
GERS of the Central Pacific Company
Mr.. Gunn-No, sir
TESTIMONY OF J. II. sTROWBRIDGE.
J. II. Strowbridge, formerly Superintendent of
Construction of the Central Pacific, and now
occupying the same position for the Pacific I'M
ment Company, testified that he superintended
the building of the Central Pacific under the
contracts let to the Contract and Finance Com
u.
monthly reports of the work to Charles Crocker
in writing, which were sent to the office of the
company. He did not know where these re-
ports were. He kept no accounts of his own.
but turned the pay-rolls, time-books, etc. over
to the company on the first of every month
The witness said he was tolerably familiar
with the cost of the material and labor used in
building the Central Pacific-Chinamen, for in
stance, were paid $50 a month. He began work
on section 80 of the road from Sacramento TO
Newcastle. At that time the company en-
ployed II 600 men. paying whites Si5 and China
men $50 month. This was in 1861 When the
road got out on the plains the number of men
employed was 1900, of whom about IL 00O
were Chinese In 1865 about 5000 men were en-
ployed, and the same number in 1869. HeCould
not tell the cost of ties the cost of the tim
Der used, as it was mostly contracted for by
other parties. Neither was he familiar with the
cost OF grading but he promised TO ascertain
as near as possible and inform the Commission
Earthworkj cost as high as five cents a yard
| and rails cost as high as $3.50 per ton. A great
dealo work was done for the Contract and
Finance Company under sub-contracts, but
| although he recollected the names of some OF
the sub-contractors, he could not now tell here
they were.
COLONEL C. T. CRoCKER RECALLED.
At this point in the proceedings Colonel c. F.
Crocker appeared in response TO request and
took the stand. His testimony of Saturday, in
which he declined to answer whether he had
ever made any expenditures on behalf of the
central Pacihc Company to influence legislation
was lthu 10 HIN. IN tnlS testimony Mr. CrOcker
said he had made some expenditures on behalf
of the company to attorneys and agents for
which no vouchers were taken and that the
directors had approved the expenditures upon
his explanation. Chairman Pattison had then
asked what these explanations were, but the
witness was advised by counsel to decline 10
answer, and did decline.
Chairman Pattison said !" Mr. Croker YOU
have been recalled to answer the question nut
to you on Saturday-that is, what explanation
did you make to the Directors of the Central
Paclnc Company concerning the expenditures
for which no vouchers were presented?
MI. Cohen-l am compelled again, as counsel
for the witness, to advise him not to answer that
question.
Mr.. Crocker-Under the advice of counsel
decline to answer.
Chairman Pattison-That is all, Mr. Croker
You are excused.
The Commission then went into executive SOS
sion. as Mr.. Pattison said, to consider whether
or not proceedings shall be instituted in the
United States Courts to compel Crocker to an
swer the question asked and also others relating
to the money he acknowledges having paid out,
the expenditure of which was ratified by the
Board of Directors.
TESTIMONY OF LLOYD TEyIs
Lloyd Tevis, President of Wells. Fargo n Co. g
Express Company testified that Leland
Crocker were. Directors in the express company,
and had an Interest in it. The two first-named
had owned stock in the corporation for about
sixteen years, the last-named for only few
cific was made in 1879 the terms of which he
could not remember He said he would pro-
duce contract for the use OF the Commission.
The Pacific Express Company was organized in
1859. by Messrs. D. o. Mills, II. D. Bacon, Le-
land Stanford, Chas Crocker, Mark Hopkins and
himself. 1t never transacted any business but
soon after being organized it was consolidated
with Wells Fargo & Co. under an agreement by
which the latter conceded n certain amount OF
stock to the Pacific Express Company. The
Central Pacific never did an express business
and never was a competitor of Wells, Fargo
Co. The witness said he con-
Quoted all the negotiations which led to the con-
solidation, and his recollection was that the Pa
cifc Express Company received one-third of the
capital stock, or s., S33 33 worth of Wells Fargo
Il Co., in consideration of which it went out OF
business, its officers, however going into Wells,
Fargo Il Co, and thereafter participating in its
management. No money was paid in but Stan
ford, Hopkins and Crocker paid their pro rata of
fund OF s500,000. which went TO establish the
bank now connected with the company. At the
time of the transfer oe stock the witness said it
was worth about fifteen cents a share. Prior TO
the consolidation Wells, Fargo x Co, had been a
losing business, but since then it had never paid
less than per cent
After promising to produce the contract with
the Southern Pacific Company, and the consol;-
datlon agreement tomorrow morning, Mr. Teyis
was excused, and the Commission adjourned